Waterfront developer hit with $15.58M fine for “bait-and-switch” building scheme

LOS ANGELES (AP)—A developer was hit with a record $15.58 million fine for constructing a high-priced hotel on the Southern California coast after initially obtaining a permit for a property with moderately priced rooms, in what state officials called a “bait-and-switch” building scheme. Sunshine Enterprises violated a state law that enshrines public access to beach areas, according to the California Coastal Commission. Commissioners unanimously approved the fine – the largest in the agency’s 40-year history – but decided not to immediately levy an additional, staff-recommended $5.9 million in mitigation fees linked to approval of a new permit. The fees would have been held in an account to help fund projects offering lower-cost alternatives for people who might have stayed in the moderately priced rooms, such as rehabilitating old motels or expanding campgrounds. Instead, the commissioners postponed a decision on issuing the fees and granting an after-the-fact permit. Commissioners indicated that they wanted to see dozens of replacement rooms created either at the current hotel or nearby. No deadline was given. “Past behavior is often a predictor of future behavior,” Commissioner Aaron Peskin said before the vote. “I don’t want their money – I want their hotel rooms. Why can’t they just convert 87 of the...